On 25 October, the FCA launched a "discussion" on the competition impacts of Big Tech’s entry into financial services. Focused on four retail financial service sectors (payments, deposit taking, consumer credit and insurance), the purpose of this programme of work is to explore:
- The incentives and barriers faced by Big Tech when contemplating entry and expansion into financial services, including potential retaliatory behaviours from incumbent financial services providers with whom many Big Tech firms have existing commercial relationships;
- strategies adopted to support Big Tech’s entry (i.e. compete or collaborate? Innovate or replicate?); and
- how best to weigh up the potential benefits and harms – noting that the benefits created by Big Tech firms’ entry need to be considered alongside the risk that their entry further entrenches their market power and ultimately leads to reduced incentives to innovate and improve outcomes for consumers.